Ripple (XRP) price experiences a sharp decline, driven by a brutal crypto market correction. Explore the reasons behind this setback and the outlook for investors. In-depth analysis and key levels to monitor for potential opportunities.
Despite a brief rise of Bitcoin (BTC) above $107,000, investors’ joy was short-lived. The entire crypto market is currently undergoing a severe correction, dragging down the altcoin Ripple (XRP).
In just a few hours, the token lost over 5% of its value, dropping from $2.44 to $2.30. This sudden decrease is due to the strong correlation between the price of Ripple and Bitcoin’s movements. When the largest cryptocurrency in terms of market capitalization experiences drastic changes, altcoins like XRP directly feel the consequences.
Ripple is now trading near a major technical support level between $2.30 and $2.35. However, this buying zone is becoming increasingly fragile. A break below this level could pave the way for a new decline towards the demand zone highlighted in green at $2.20.
To resume an upward trend, XRP must first reclaim the $2.40 mark. Beyond that, the levels of $2.45 and $2.50 will become potential targets. Without confirmation of this optimistic scenario, selling pressure continues to dominate the market.
However, XRP still has this huge downward trendline below $2.1. There is a high probability that it will retest this level in the coming weeks. Moreover, if the price falls below $2, XRP is likely to return to the zone between $1.64 and $1.30, representing a potential drop of over 30%.
The current context of low volatility in the crypto market exacerbates price movements. Even slight variations can lead to significant liquidations of leveraged positions. In this uncertain climate, Ripple remains particularly vulnerable.
Without a sustained stabilization of Bitcoin above $100,000, it will be challenging for XRP to break out of the overall bearish trend. Investors will need to exercise caution and await a clear technical confirmation before increasing their positions.
The drop in Ripple’s price occurs within a global context of market crypto stress. As long as Bitcoin does not find a clear direction, XRP will remain under pressure and likely to extend its downward movement.
The current technical levels suggest many liquidations in the coming days, where prices could act sharply. For French investors, it is therefore recommended to wait for a trend clarification before taking a position on Ripple.
It is worth mentioning that May 19 is an important date for Ripple, as the launch of the XRP Futures ETF is scheduled for today. The token could react in either direction.
To buy XRP, here is a practical guide to easily get it on Bitget:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
